People are reassessing the U.S. economic outlook because they had thought the recovery was jobless. People are beginning to price in the chance of a rate hike by August.

People already have a more positive view of the European economy, so they are not that fussed. The market is a bit tired after all the dollar selling this week.

Risk aversion is rising in the market and investors are nervous about what will happen when U.S. equities open.

Higher oil prices, and fears over Japanese stocks are affecting the dollar more than any other currency.

There may be a few flows from some parts of Europe, but there are no major flows, and there's certainly no fresh news to trade, and there's been no surprises.

Japanese officials make statements like that when we see very rapid movements in the foreign exchange markets because they are concerned such moves can build into stronger trends.

It's too early to conclude it's the end of the dollar rally. Data in the U.S. should continue to be healthy and we could see rate expectations moving higher, supporting the dollar.

Forces driving the dollar are still the same, concerns about the current account deficit. A rise in sterling, triggered by strong UK data, is also contributing to dollar weakness.

Higher interest rates make it much more comfortable for Japanese investors to be holding dollars. The chances of rate increases in the U.S. continue to rise while in Japan the prospects are much less certain.